Examkin

Question

Difficulty: Very hardUnion Legislature: Parliament Structure, Lawmaking, and Committees

With reference to the lawmaking procedure for financial bills in the Indian Parliament, consider the following statements:

1. A Financial Bill (Category I) under Article 117(1) can be introduced only in the Lok Sabha and requires the prior recommendation of the President.
2. A Financial Bill (Category II) under Article 117(3) can be introduced in either House of Parliament without the prior recommendation of the President for its introduction.
3. Unlike a Financial Bill (Category I), a Financial Bill (Category II) cannot be rejected or amended by the Rajya Sabha once passed by the Lok Sabha.

Which of the statements given above are correct?

  1. A
    1 only
  2. 1 and 2 onlyAnswer
  3. C
    2 and 3 only
  4. D
    1, 2 and 3

Answer

Statements 1 and 2 are correct, while statement 3 is incorrect.
The correct combination includes the first and second statements only. Under Article 117(1), Category I Financial Bills share two characteristics with Money Bills: they must originate in the Lok Sabha and require the recommendation of the President. Under Article 117(3), Category II Financial Bills can originate in either House without prior presidential recommendation at introduction. Category II bills are ordinary in all legislative aspects, meaning the Rajya Sabha holds full powers of amendment and rejection.

Step-by-Step Solution

1
Analyze Statement 1 regarding Financial Bill (Category I) under Article 117(1)
Statement 1 is correct. Article 117(1) specifies that a Financial Bill (I), which contains matters listed in Article 110 along with general legislative provisions, can only be introduced in the Lok Sabha and requires the prior recommendation of the President.
Establishing the constitutional prerequisites for introducing a Category I financial bill.
2
Analyze Statement 2 regarding Financial Bill (Category II) under Article 117(3)
Statement 2 is correct. A Financial Bill (II) contains provisions involving expenditure from the Consolidated Fund of India but no Article 110 matters. It can originate in either House and does not require the President's prior recommendation for introduction (though recommendation is needed before consideration/passing).
Evaluating the introduction procedure for Category II financial bills.
3
Analyze Statement 3 regarding Rajya Sabha's powers over Financial Bill (Category II)
Statement 3 is incorrect. A Financial Bill (Category II) is governed by the ordinary bill procedure in all respects. The Rajya Sabha possesses equal powers to amend or reject it, and deadlocks can be resolved via a joint sitting under Article 108.
Distinguishing the powers of the Rajya Sabha over money bills versus ordinary/financial bills.

Key Concept

Distinction between Money Bills, Financial Bills (Category I under Article 117(1)), and Financial Bills (Category II under Article 117(3))
Estimated Time:2m 0s
Rate this question

Topics

Union Legislature: Parliament Structure, Lawmaking, and Committees

More questions from this topic